Bill Summary, LB 542 (1995)

 

LB 542 addresses payments to districts who received less state aid for the 1990-91 school year, because federal impact aid was considered as a formula resource.  If certain federal legislation is enacted by October 1, 1995, NDE will make payments to school districts which received less state aid for the 1990-91 school year due to the inclusion of federal impact aid entitlements in the calculation of district formula resources.  The payments shall be made on or about October 16, 1996 from funds appropriated for this purpose.  Each affected district will receive the difference between the state aid the district received for the 1990-91 school year and the amount the district would have received if impact aid had not been considered.  No payment will be made to school districts which receive federal impact aid entitlements under section (3)(d)(2)(B) of Public Law 81-874 or similar provisions of the 1994 re-enactment of the impact aid statutes.  If no funds are separately appropriated, NDE will set aside the payments out of the amount appropriated to the Tax Equity and Educational Opportunities Fund for the 1995-96 school year.

 

If the federal legislation is enacted, NDE will make payments from the funds set aside.  If the federal legislation is not enacted, the funds will be held until it is determined whether Nebraska is certified to take impact aid into consideration for the 1990-91 state aid distribution.  If Nebraska is certified to consider the entitlements, the funds will be reappropriated to the Tax Equity and Educational Opportunities Fund.  If Nebraska is not certified to consider the entitlements, NDE will make the payments from the funds set aside within 60 days after the final determination.  There are two options for the federal legislation at issue.  The first option would provide that payments under section 3(d)(2)(B) of Public Law 81-874 do not need to be refunded for the 1990-91 school year, that funds do not need to be restored or reimbursed to affected districts by redistributing state aid for the 1990-91 school year, and that Nebraska be deemed not certified for the 1991-92 school year.  The second option would provide that payments under Public Law 81-874 do not need to be refunded for the 1990-91 school year and that Nebraska be deemed certified for school years 1990-91 through 1994-95.  The federal Department of Education determines if states are certified for impact aid based on compliance with program rules and regulations.  Payments made pursuant to this bill will not be considered as district formula resources.